Murphy USA Inc (MUSA)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		63.94	83.23	88.71	66.73	81.17
DSO	days	5.71	4.39	4.11	5.47	4.50

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 63.94
= 5.71

Analyzing Murphy USA Inc's Days Sales Outstanding (DSO) over the past five years reveals a varying trend in the collection period for accounts receivable. In 2023, the DSO increased to 5.71 days from the previous year's 4.39 days, indicating that it took the company longer to convert its credit sales into cash. This could suggest potential issues with receivables management or changes in customer payment behavior.

Comparing 2023 to 2021, the DSO increased by 1.60 days, signifying a longer collection period. However, in 2021, there was a slight improvement from 2020, where the DSO was 5.47 days, indicating a better management of accounts receivable during the year. Furthermore, in 2020, the DSO increased compared to 2019, when it stood at 4.50 days.

Overall, the trend in Murphy USA Inc's DSO shows fluctuations over the past five years, with some years exhibiting improvements in receivables collection efficiency while others showing increased collection periods. Further analysis of the company's credit policies, customer base, and receivables management practices could provide insights into the factors influencing these changes.